23.Given the following information, calculate the weighted average cost of capital. Capital structure:

Preferred stock..................................................... 10%

Common equity................................................... 60

Debt..................................................................... 30

Additional information:

Corporate tax rate.................................................................. 34%

Dividend, preferred............................................................... $9.00

Dividend, expected common................................................. $3.50

Price, preferred...................................................................... $102.00

Growth rate............................................................................ 6%

Bond yield............................................................................. 10%

Flotation cost, preferred........................................................ $3.20

Price, common....................................................................... $70.00